09 March 2017
Hello
Can anyone tell me the status of a co.?
A is a public co having a subsy pvt co.B..Now as per the provisions of Co.Act 2013,B is deemed public co.Now B has a subsidiary co.C..
What will be the status of co.C..??
09 March 2017
If C is a Private company then it will also be considered as 'Deemed Public Company'
Below is the definition of 'Deemed Public Company'
“A company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles”
So as per the definition a deemed public company will be considered as public company for all the provisions of the Act. So now as per the Act 'B' is public company (Deemed). Now, 'C' is no more a subsidiary of a private company but it is a subsidiary of a Public Company. So C is also a Deemed public company.
This is my understanding. Would appreciate more suggestions.
CAclubindia
